Why You Need Renters Insurance

Why You Need Renters Insurance

At Ihry Insurance, we love nothing more than conversing with those in our communities. Through these talks, we have discovered that one of the most common, and laziest, mistakes renters make is neglecting to protect themselves, and their belongings, with renters insurance. With an average monthly payment of $15 (lower than a Friday night pizza delivery), renters insurance possesses the ability to prevent significant financial loss.

Besides the fact that your landlord, who may even require it, has likely implemented a clause in your lease that frees them from liability, let’s explore why renters insurance is a must.

Covers Theft

If your rental property or apartment is subject to burglary and/or theft, it is highly unlikely that your valuables will be recovered. Unless your landlord failed to provide proper security for your building, they are not responsible for stolen or destroyed items. Depending on your renters insurance policy, your stolen or tampered items will be covered. Items such as clothes, jewelry, luggage, furniture, and electronics.

Covers Natural Causes

Nature can be unpredictable and unforgiving. In the case that your belongings are damaged or destroyed by a natural event, such as fire, tornado, hail, hurricane, etc., it is essential to possess the proper renters insurance. Nature can’t be held liable – that means you are. When evaluating your coverage options, be sure to review which natural events are considered ‘riders’, or add-ons. As add-ons to your standard policy, it is crucial to have your area’s most common natural events covered.

Covers Liability

It isn’t uncommon for a guest to injure themselves on a loose step, a hidden nail, or rut in your lawn. Even worse are the extremely high costs associated with such negligence. In the event that a guest of your rental property injuries themselves, rental insurance covers, up to a certain amount, court payments and medical payments. Even if you take all necessary precautions and deem your rental safe, unforeseen accidents happen. Don’t get stuck with someone else’s bill.

Covers Your Negligence

At this point in your life, you are secure with the reality that we all make mistakes. Mistakes such as accidently leaving a faucet running, failing to secure a hanging object, or leaving a stove on. In the case of such negligence, undesirable outcomes likely await. Renters insurance will assist you in covering the costs of replacing or repairing your belongings. Although it may seem obvious, renters insurance does not cover intentional damage.

Covers Travel

Many of us travel with our most prized possessions. With renters insurance, coverage extends beyond your rental property. Depending on what you have deemed worthy of coverage, your belongings are protected from damage even during travel.

Covers Additional Expenses Due To Inconvenience

In the event that you and your family are temporarily relocated, due to unforeseen circumstances, necessities, such as food and rent, may be covered by insurance. Don’t add additional inconvenience to an already inconvenient time.

It’s clear to see that renters insurance provides a lot and requires little. Protect your belongings, and yourself, with proper renters insurance coverage. Contact our team today for a free quote.

If you wish to do any of the above or have questions regarding your policy, please contact your insurance agent.

The descriptions contained herein are not intended to be complete descriptions of all terms, exclusions and conditions in the subject policies, but are solely provided as general descriptions of the products. Descriptions contained herein are general and informational only.

This publication is provided “as is” without warranty of any kind, either expressed or implied as to its accuracy. Ihry Insurance Agency, Inc. assumes no responsibility for errors or omissions in this publication or other documents which are referred by or linked to this publication. In no event shall Ihry Insurance Agency, Inc. be liable for any special, incidental, indirect or consequential damages of any kind, or any damages whatsoever, including, without limitation, those resulting from loss of use, data, or profits whether or not advised of the possibility of damage, and on any theory, arising to or in connection with the use or performance of this information. This publication may not be used to interpret any provision of an insurance policy.

NON-DISCRIMINATION STATEMENT

The U.S. Department of Agriculture (USDA) prohibits discrimination in all its programs and activities on the basis of race, color, national origin, age, disability, and where applicable, sex, marital status, familial status, parental status, religion, sexual orientation, genetic information, political beliefs, reprisal, or because all or part of an individual’s income is derived from any public assistance program. (Not all prohibited bases apply to all programs). Persons with disabilities who require alternative means for communication of program information (Braille, large print, audiotape, etc.) should contact USDA’s TARGET Center at (202) 720-2600 (Voice and TDD).

At Ihry Insurance Agency, Inc., we respect the privacy of all visitors to our web site. We do not require you to disclose any personal information without your consent, and the information you provide to us stays with us. We do not gather information on individual users on our web site.

Our site also includes forms to send us the necessary information to prepare an insurance quote for you. As with a phone call or talking to us in person, the information obtained remains with our agency, and is used internally in the process of making decisions such as which company we represent is the best match. Information from such a request will not be sold, nor will it be shared with others outside the agency unless we are required by law to do so.

When you contact us by email, please keep in mind that your email address, as well as any other information that your email header discloses, will be revealed to us through the email. We will only use this information, however, for the specific purpose of responding to your comments or questions. Your email address will not be sold, nor will it be shared with others outside the agency unless we are required by law to do so.

We also reserve the right to update our privacy policy at any time by posting the latest version.

The following statements are made in accordance with the Privacy Act of 1974 (5 U.S.C. 552a): The Risk Management Agency (RMA) is authorized by the Federal Crop Insurance Act (7 U.S.C. 1501-1524) or other Acts, and the regulations promulgated thereunder, to solicit the information requested on documents established by RMA or by approved insurance providers (AIPs) that have been approved by the Federal Crop Insurance Corporation (FCIC) to deliver Federal crop insurance. The information is necessary for AIPs and RMA to operate the Federal crop insurance program, determine program eligibility, conduct statistical analysis, and ensure program integrity. Information provided herein may be furnished to other Federal, State, or local agencies, as required or permitted by law, law enforcement agencies, courts or adjudicative bodies, foreign agencies, magistrate, administrative tribunal, AIPs contractors and cooperators, Comprehensive Information Management System (CIMS), congressional offices, or entities under contract with RMA. For insurance agents, certain information may also be disclosed to the public to assist interested individuals in locating agents in a particular area. Disclosure of the information requested is voluntary. However, failure to correctly report the requested information may result in the rejection of this document by the AIP or RMA in accordance with the Standard Reinsurance Agreement between the AIP and FCIC, Federal regulations, or RMA-approved procedures and the denial of program eligibility or benefits derived therefrom. Also, failure to provide true and correct information may result in civil suit or criminal prosecution and the assessment of penalties or pursuit of other remedies.

Insurance Glossary

Actual Cash Value

An amount equivalent to the fair market value of the stolen or damaged property immediately preceding the loss. For real property, this amount can be based on a determination of the fair market value of the property before and after the loss. For vehicles, this amount can be determined by local area private party sales and dealer quotations for comparable vehicles.

Admitted Company

An insurance company authorized to do business in appropriate state.

Agent

A licensed person or organization authorized to sell insurance by or on behalf of an insurance company.

Aircraft Insurance

Coverage for the insured in the event that the insured’s negligent acts and/or omissions result in losses in connection with the use, ownership, or maintenance of aircraft.

Automobile Insurance

Coverage on the risks associated with driving or owning an automobile. It can include collision, liability, comprehensive, medical, and uninsured motorist coverages.

Binder

A temporary or preliminary agreement which provides coverage until a policy can be written or delivered.

Bodily Injury

Any physical injury to a person. The purpose of liability insurance is to cover bodily injury to a third party resulting from the negligent or unintentional acts of an insured.

Boiler and Machinery Insurance

Covers losses resulting from the malfunction of boilers and machinery. This coverage is usually excluded from property insurance creating the need for this separate product.

Broker

A licensed person or organization paid by you to look for insurance on your behalf.

Burglary

Coverage against loss as a result of forced entry into premises.

Cancellation

The termination of insurance coverage during the policy period. Flat cancellation is the cancellation of a policy as of its effective date, without any premium charge.

Claim

Notice to an insurer that under the terms of a policy, a loss maybe covered.

Claimant

The first or third party. That is any person who asserts right of recovery.

Collision (Auto)

Reimburses you for damage to your automobile sustained in a collision with another car or with any other object, movable or fixed, (for example, you accidentally backed into another object while pulling out from a parking stall and causing damage to the bumper and fender of your covered automobile).

Collision Deductive Waiver

This coverage waves your collision deductible if you are hit by an negligent uninsured motorist.

Common Carrier Liability

Coverage for transportation firms that must carry any customer’s goods so long as the customer is willing to pay. Examples include trucking companies, bus lines, and airlines.

Comprehensive (Auto)

Provides coverage for any direct and accidental loss of, or damage to, your covered automobile and its normal equipment, to include but not limited to fire, theft or malicious mischief.

Comprehensive Glass Insurance

Coverage on an “all risks” basis for glass breakage, subject to exclusions of war and fire.

Credit Life Insurance

Insurance issued to a creditor (lender) to cover the life of a debtor (borrower) for an outstanding loan.

Decline

The company refuses to accept the request for insurance coverage.

Deductible

The amount of the loss which the insured is responsible to pay before benefits from the insurance company are payable. You may choose a higher deductible to lower your premium.

Depreciation

A decrease in value due to age, wear and tear, etc.

Disability Insurance

Health insurance that provides income payments to the insured wage earner when income is interrupted or terminated because of illness, sickness, or accident.

Endorsement

Amendment to the policy used to add or delete coverage. Also referred to as a “rider.”

Exclusion

Certain causes and conditions, listed in the policy, which are not covered.

Expiration Date

The date on which the policy ends.

Face Amount

The dollar amount to be paid to the beneficiary when the insured dies. It does not include other amounts that may be paid from insurance purchased with dividends or any policy riders.

Financial Guarantee Insurance

A surety bond, insurance policy or, when issued by an insurer, an indemnity contract and any guaranty similar to the foregoing types, under which loss is payable upon proof of occurrence of financial loss to an insured claimant, obligee, or indemnitee.

Fire Insurance

Coverage for loss of or damage to a building and/or contents due to fire.

Good Driver Discount

To be eligible for the Good Drivers Discount all operators of the insured vehicles must have been licensed for three or more year, have no more than a one (1) point charge on their driving record and has not been determined “at fault” in an accident resulting in bodily injury or death to any person.

Grace Period

A period (usually 31 days) after the premium due date, during which an overdue premium may be paid without penalty. The policy remains in force throughout this period.

Guaranteed Insurability

An option that permits the policy holder to buy additional stated amounts of life insurance at stated times in the future without evidence of insurability.

Health Insurance

A policy that will pay specifies sums for medical expenses or treatments. Health policies can offer many options and vary in their approaches to coverage.

Homeowner Insurance

An elective combination of coverages for the risks of owning a home. Can include losses due to fire, burglary, vandalism, earthquake, and other perils.

Incontestable Clause

A policy provision in which the company agrees not to contest the validity of the contract after it has been in force for a certain period of time, usually two years.

Insured

The policyholder – the person(s) protected in case of a loss or claim.

Insurer

The insurance company.

Legal Insurance

Prepaid legal insurance coverage plan sold on a group basis.

Liability (Auto)

Coverage for a policyholder’s legal liability resulting from injuries to other persons or damage to their property as a result of an auto accident.

Liability Insurance

Coverage for all sums that the insured becomes legally obligated to pay because of bodily injury or property damage, and sometimes other wrongs, to which an insurance policy applies.

Life Insurance

A policy that will pay a specified sum to beneficiaries upon the death of the insured.

Limit

Maximum amount a policy will pay either overall or under a particular coverage.

Loan Value

The amount which can be borrowed at a specified rate of interest from the issuing company by the policyholder, using the value of the policy as collateral. In the event the policyholder dies with the debt partially or fully unpaid, then the amount borrowed plus any interest is deducted from the amount payable.

Marine Insurance

Coverage for goods in transit and the vehicles of transportation on waterways, land, and air.

Material Misrepresentation

The policyholder / applicant makes a false statement of any material (important) fact on his/her application. For instance, the policyholder provides false information regarding the location where the vehicle is garaged.

Medical Payments

Will pay reasonable expenses incurred for necessary medical and /or funeral services because of bodily injury caused by accident and sustained by you or any other person while occupying a covered automobile.

Misquote

An incorrect estimate of the insurance premium.

Mortgage Insurance

Life insurance that pays the balance of a mortgage if the mortgagor (insured) dies.

Peril

The cause of a possible loss. For example, fire, theft, or hail.

Policy

The written contract of insurance.

Policy Limit

The maximum amount a policy will pay, either overall or under a particular coverage.

Premium

The amount of money an insurance company charges for insurance coverage.

Premium Financing

A a policyholder contracts with a lender to pay the insurance premium on his/her behalf. The policyholder agrees to repay the lender for the cost of the premium, plus interest and fees.

Pro-Rata Cancellation

When the policy is terminated midterm by the insurance company, the earned premium is calculated only for the period coverage was provided. For example: an annual policy with premium of $1,000 is canceled after 40 days of coverage at the company’s election. The earned premium would be calculated as follows: 40/365 days X $1,000=.110 X $1,000=$110.

Property Damage

Damage to another person’s property. The purpose of liability insurance is to cover property damage to a third party resulting from the negligent or intentional acts of an insured.

Quote

An estimate of the cost of insurance, based on information supplied to the insurance company by the applicant.

Replacement Cost

The cost to repair or replace an insured item. Some insurance only pays the actual cash or market value of the item at the time of the loss, not what it would cost to fix or replace it. If you have personal property replacement cost coverage, your insurance will pay the full cost to repair an item or buy a new one once the repairs or purchases have been made.

Replacement Value

The full cost to repair or replace the damaged property with no deduction for depreciation, subject to policy limits and contract provisions.

Reinstatement

The restoring of a lapsed policy to full force and effect. The reinstatement may be effective after the cancellation date, creating a lapse of coverage. Some companies require evidence of insurability and payment of past due premiums plus interest.

Rider

Usually known as an endorsement, a rider is an amendment to the policy used to add or delete coverage.

Short-Rate Cancellation

When the policy is terminated prior to the expiration date at the policyholder’s request. Earned premium charged would be more than the pro-rata earned premium. Generally, the return premium would be approximately 90 percent of the pro-rata return premium. However, the company may also establish its own short-rate schedule.

Solicitor

A licensed employee of a fire and casualty agent or broker who may act for the agent or broker in some circumstances.

Sprinkler Insurance

Coverage for property damage caused by untimely discharge from an automatic sprinkler system.

Surcharge

An extra charge applied by the insurer. For automobile insurance, a surcharge is usually for accidents or moving violations.

Surrender

To terminate or cancel a life insurance policy before the maturity date. In the case of a cash value policy, the policyholder may exercise one of the non-forfeiture options at the time of surrender.

Title Insurance

Coverage for losses if a land title is not free and clear of defects that were unknown when the title insurance was written.

Underwriting

The process of selecting applicants for insurance and classifying them according to their degrees of insurability so that the appropriate premium rates may be charged. The process includes rejection of unacceptable risks.

Uninsured Motorist Bodily Injury

Will pay you and your passengers for bodily injury cause by a negligent uninsured motorist, a hit-and-run driver, or by a driver whose insurer is insolvent.

Uninsured Motorist Property Damage

Will pay for damages to your automobile, set up to a limit, when caused by a negligent uninsured motorist.

Waiting Period

A period of time set forth in a policy which must pass before some or all coverages begin.

Workers Compensation Insurance

Coverage providing four types of benefits (medical care, death, disability, and rehabilitation) for employee job-related injuries or diseases as a matter of right (without regard to fault).